US - The limit on allocation to hedge funds for Massachusetts retirement systems has been increased by 2.5% to 7.5% following a decision by the Public Employee Retirement Administration Commission (Perac).
Perac issued its revised hedge fund investment guidelines in which the vote an increase in the permissible allocation to hedge funds and absolute return strategies was revealed.
Together with the higher permitted allocation levels, however, Perac cautioned systems investing on their own and said they should restrict themselves to fund of funds.
Perac also offered pension plans guidance on how many separate hedge funds should be owned within the total allocation to the asset class. This was done for the sake of diversification.
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